How Much Does It Cost to Build an App in the UK?
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May 29, 2025
In early 2024, FruPro — a B2B marketplace based in London — set out to build their MVP. They contacted three teams. A Shoreditch agency quoted £94k. A hybrid setup — UK-based PM with Polish devs — came in at £57k. Offshore? £28k, but no GDPR compliance, no UK legal coverage, and no post-launch support.
They went with the hybrid team. The product launched in 8 weeks. Final spend: £59k. Then they recovered £20k via the R&D Tax Credit. There were still friction points — the founder spent days clarifying specs, and DevOps monitoring was an extra line item. But the budget held, and the team had something real to show — not just a pitch deck.
Why does this matter? Because app development cost in the UK isn’t about chasing the lowest number — it’s about knowing what’s included, what gets added later, and where smart founders reduce spend (without sabotaging delivery).
This guide will help you:
- Benchmark real-world cost ranges for MVP, mid-level, and complex builds — across London, regions, and hybrid setups.
- Spot the hidden costs most quotes ignore — from VAT and legal to support and infrastructure.
- Understand what grants and tax reliefs are available — and how they can reduce your cost by 30–50%.
Not sure where your project fits? Use this UK app cost calculator to estimate pricing, timeline, team structure, and how much you could save with hybrid dev or R&D incentives.
So what does mobile app development cost in the UK look like in 2025?
Here’s a breakdown based on data from real UK startup teams:
Includes core features: UX/UI design, backend, PM, QA, and basic DevOps.
🟡 Use this as your investor-ready budget baseline.
If you’re seriously considering offshore, check out our guide on the best countries for software development outsourcing so you don’t end up trading cheap for chaos.
What actually drives the London premium?
Here's a visual snapshot of what different setups cost — before we break down why London quotes come out so high.
💼 1. Salary & Overhead Inflation
Hiring app developers in London means paying £90–£120/hour for senior engineers — not just because the talent is better, but because you’re covering:
- Higher wages (London median tech salary is 20–30% above UK average)
- Office rent (double or triple regional rates)
- Faster staff churn (agencies hedge risk by quoting higher)
The same senior React developer may cost £85/h in Manchester, £40/h in Warsaw, £28/h in Sofia.
💸 2. VAT & Agency Margins
Most central agencies add +20% VAT — non-negotiable for UK VAT-registered clients.
On top, typical agency markups cover:
- Sales, project admin, “account management”
- In-house QA and PM even if not used much
- Bizdev overhead, which can eat 10–15% of your quoted hours
In practice: A £100k “all-in” London quote often nets £68–75k of actual engineering, the rest is tax and admin.
⚠️ 3. Regulatory Hand-Holding (GDPR, IP, Contracts)
London agencies know what’s required for UK/EU compliance.
This means you pay for:
- GDPR readiness (privacy, consent flows, legal docs)
- NDA & IP assignment
- Insurance for errors and data loss
Often, these are pre-baked into your estimate “for your own good” — but can inflate simple builds by thousands.
Should any founder ever pay the London premium?
Worth it if:
- You need bulletproof compliance (fintech, health, enterprise SaaS)
- Face-to-face with devs is critical (pre-launch, rapid pivots, investor demos)
- You’re burning grant money or corporate funds and need a name-brand partner for optics
Usually not worth it if:
- Your MVP is consumer, marketplace, or B2B SaaS with standard flows
- You have a solid in-house PM/CTO who can control scope and code reviews
- You want to move fast and keep money for marketing or extra iterations
For a full in-house vs outsourcing cost breakdown—real numbers, not sales spin—see our data-backed comparison for UK startups.
Practical takeaway:
If you’re hiring app developers in the UK, ask what is actually included in the quote (and what is an extra). For 80% of startups, a hybrid model — UK-based product owner with regional or nearshore devs — delivers the same launch result, for half the money and no loss in code quality.
And if you do go with a London shop, press for a transparent breakdown:
- % of hours on code vs admin
- VAT, legal, insurance, and PM charges separated
- Who actually owns your code and IP
Most “London premium” stories are just a function of founders not seeing what’s inside the invoice.
The 4 Hidden Startup Budget Killers
These aren’t in the quote. But they’re always on the invoice.
1. Wrong Team Composition = Chaos
No PM? Then you are the PM. You’ll find yourself writing Jira tickets at midnight, explaining features for the fourth time, and firefighting timezone mishaps. Saving £3–5k by skipping product management often means burning much more on mistakes and delays.
“Our MVP team had 3 devs but no PM. We spent the first 2 weeks arguing about login logic.” — early-stage founder, Manchester
If you’re light on budget, bring in a freelance PM or make sure your agency genuinely drives the process — not just sends status reports.
2. The Post-Launch Support Trap
You’ve shipped. Great. Now the “real” work begins: iOS breaks your push, your cloud bill doubles, users demand GDPR deletions. Support contracts easily run 15–25% of your build cost per year — and “out of scope” bugs? That’s where agencies make their margin.
“We budgeted £60k for build. First year support took another £18k.” — B2C founder, Bristol
Want a checklist for the first 100 days after app launch? Here’s what most founders wish they’d known before shipping v1.
Hammer out a post-launch support plan in your contract, or line up a freelance dev to cover break/fix. Always ask: what’s included after launch — and what isn’t?
3. VAT + Legal Fees: The Quiet Multipliers
When planning the app development process in the UK, founders often budget for design and code — but forget two huge add-ons: VAT and legal costs. Most UK agencies are VAT-registered. That means VAT on app development adds an instant 20% to every invoice. Then come the legal bills:
- NDAs
- IP transfer contracts
- Privacy policies for GDPR
- Together, the legal cost of an app typically adds another £2–10k — and yes, investors will expect this done right.
Use SeedLegals or a legal template platform early, and always confirm whether your quote includes VAT.
4. Scope Creep & Deadline Crunch Tax
Classic trap: “Just one tweak…” Three features later, deadlines slip, and to catch up you pay overtime or ship bugs. Some agencies hike rates for late-stage changes or quietly pad the sprint.
What works: Freeze your feature list before sprint one. Log every change request. And, before you sign, ask: “How many hours typically go to rework per feature here?” If there’s no straight answer, that’s a warning.
The chaos tax is always real, whether you see it in the proposal or not. Plan for the 20–40% overhead — or keep tight internal control from day one.
👇 Next: Real numbers — UK developer rates by region, and how hybrid teams can cut your budget (not quality).
2025 UK App Developer Rates by Role & Region
Below are 2025 UK app developer rates by role and location, taken from live agency and freelance quotes. If you plan to hire UK app developers, benchmark your offer against these numbers first.
- London premium: +30–50 % versus regional UK rates.
- Hybrid model: UK PM + Poland/Ukraine coding ≈ 45 % cheaper, still GMT-friendly.
- Budget check: hourly rate × 160 hours/month ≈ monthly burn per full-time equivalent.
Use these figures to validate agency proposals and to set realistic board-level cost forecasts.
Free Money: Grants, SEIS Tax Relief, R&D Tax Credits UK
“Our MVP cost £60k. With SEIS and R&D tax credits UK, net cost was just £32k.” — Healthtech founder, Manchester
Many founders ignore non-dilutive funding. In the UK, these three tools can cut app costs by 30–50% if used correctly:
- Innovate UK grant: Non-dilutive funding for early-stage R&D, MVPs, and deep tech. Typical Innovate UK Smart Grant is up to £300k. Grants cover salaries, contractors, even some design and IP work. Application is competitive, but win rates for strong tech teams are real.
- SEIS tax relief: SEIS (Seed Enterprise Investment Scheme) lets UK angel investors reclaim 50% of their investment against income tax. SEIS tax relief makes raising a £150k pre-seed round far easier — and gives you a strong pitch point for UK angels.
- R&D tax credits UK: R&D tax credits refund up to 18–27% of qualifying software costs, even for pre-revenue startups. If your MVP or SaaS build includes any technical uncertainty or novel tech, claim this. Example: Spend £100k, get £18k back.
Apply early. Stack SEIS with R&D relief. Pair a hybrid team with an Innovate UK grant, and your cash goes twice as far.
Case Studies — From MVP to Market
FruPro — “We were already in the red, but at least we had something to demo”
They got a £94k quote from a London agency. Looked solid — until the rewrites started. UX changed twice, backend slipped a sprint, support was weekdays-only. Investors weren’t impressed. Only after switching to in-house devs did things start moving.
→ Agencies can ship, but momentum often starts when you take control.
Beam XR — “No grant, no code. Simple as that.”
Sofia’s team applied for an Innovate UK Smart Grant and got it. That meant 90 days to show something real. They cut scope, built fast, tested with users. By demo day, they had an actual product — not a prototype.
→ Investors didn’t need a story — they saw execution.
Still torn between no-code and professional development? Read this founder’s story to see when DIY saves money—and when it’s a false economy.
No-code founder — “FlutterFlow saved me 6 months of stress”
Pavel built his MVP in FlutterFlow for £6k, pitched it as-is: “Yes, we’ll rebuild after funding.” That honesty landed him SEIS-backed pre-seed. The next version had real backend, proper infra, and zero no-code.
→ Sometimes being upfront beats being overbuilt.
Hybrid SaaS team — “It would’ve collapsed without a UK PM”
Leeds-based founder. PM in London. Devs in Ukraine. Week one: chaos — timezone gaps, vague tickets, nobody sure who owned what. The PM rewrote specs, ran daily standups, and got it back on track. Total spend: £32k. R&D refund: £6k.
→ Hybrid works — if someone local holds the reins.
Hire Local or Go Hybrid?
Should you hire app developers in the UK, go offshore, or try a hybrid team?
There’s no single right model — but some setups make more sense depending on your industry, funding stage, and level of risk tolerance.
What founders actually do:
- In regulated spaces (finance, health, edtech): Most founders stick with UK teams or use hybrid models with a local PM to handle GDPR, FCA sandbox, or NHS requirements.
- On lean pre-seed budgets: Hybrid teams are the default. You get skilled engineers at £30–45/h, but retain UK-level communication and stakeholder control.
- Going fully offshore? It’s not off-limits — especially for MVPs — but you’ll need airtight documentation, timezone discipline, and clarity on who owns what.
“We hired app developers offshore for the first build. It worked, but I had to manage everything — roadmap, QA, support, even time tracking. Second time, we hired a UK-based PM to run it. Worth every pound.”
— SaaS founder, Manchester
Full guide: How to Hire Remote Developers in 2025 →
Timeline, DevOps, and That First-Year Burn You Never See Coming
“How long does it take to build an app in the UK?”
Short answer: about three months for something lean, six if you keep adding “one tiny feature,” and seven-plus if you’re tackling enterprise integrations or heavy compliance.
- A focused team can turn out a real MVP in 8–12 weeks—think login, core feature, basic analytics.
- Most mid-range products—marketplaces, SaaS dashboards—settle around 12–24 weeks once you add payments, notifications, and stakeholder feedback loops.
- Anything that has to pass a bank’s or the NHS’s security gate easily stretches to 20–32 weeks. Testing and paperwork take as long as the code.
Where the invisible money goes
Cloud: Even a small UK app sits on AWS or GCP for £50–200 a month. Not huge, but forget to budget it and you’re already behind.
DevOps: CI/CD pipelines, automated tests, error monitoring—none of it feels urgent until the first crash. Build it in early or pay later in user complaints and 2 a.m. hotfixes.
The honest math on upkeep
Wondering about app maintenance cost in the UK? A safe rule of thumb is 15–25 percent of whatever you spent on the build—every single year. Apple releases a new iOS, Google tweaks Play-Store rules, a security library gets patched: someone has to update your code.
So if your MVP ran £60 k, pencil in another £10–15 k for the first year—bug fixes, OS updates, tiny but essential tweaks. Skip that line item and you’ll end up raiding marketing budget just to keep the app alive.
Early bugs are cheap to fix; late bugs eat runway and reputation. Put DevOps on the task list from day one, and treat maintenance as rent—you never really “own” an app, you just keep paying to live in it.
Legal & Compliance Checklist (UK-Ready)
If you’re building for UK users, you’re not just writing code — you’re signing up for regulations. Most founders don’t budget for this, but skip it, and your app can get pulled before launch or rejected by investors who’ve seen this mess before.
Here’s what needs to be in place if you want to look legit from day one:
🔐 GDPR for apps (yes, even MVPs)
If your app collects any personal data — names, emails, location, even anonymous IDs — it falls under UK GDPR. You need:
- Clear consent flows
- A privacy policy
- Data deletion logic (even if you don’t think anyone will ask)
For ICO compliance, your startup must register with the Information Commissioner’s Office — even if you’re pre-revenue. It's a £40–60 annual fee and takes 15 minutes online. Miss it, and you risk fines or App Store takedowns.
📄 IP ownership & contractor contracts
Who owns your code? If it’s not spelled out in writing, the developer might — not you. If you're working with freelancers or agencies, make sure your contract includes IP assignment clauses. Also cover NDAs and commercial rights early, before the first line of code is written.
💳 FinTech? Know the FCA sandbox
If your app touches payments, loans, crypto, or anything financial, it may need to pass through the FCA sandbox. This isn’t just paperwork — it’s legal territory. Without sandbox approval or a compliance plan, your bank integration or payment feature may never go live.
🏥 Health or EdTech? Welcome to real regulation
Apps in health and education spaces deal with extra layers:
- MHRA if you're processing health data or giving clinical advice
- NHS guidelines for integration and cybersecurity
- The Children’s Code if your product is aimed at under-18s (yes, even if you didn’t mean to)
Add 3–6 weeks to your roadmap if any of this applies.
🍪 Don’t forget the cookies (and not the fun kind)
You’ll need a cookie banner, a data usage disclosure, and a fallback for opt-outs — especially if you’re using tools like Google Analytics, FullStory, or anything that tracks users.
Key Takeaways
- London is the fastest route to a launch — but you’ll pay for the privilege.
- Hybrid teams (UK PM + nearshore devs) hit the sweet spot for most UK startups.
- Use SEIS and R&D tax credits: together they can chop your build cost in half.
- Don’t forget the “boring” stuff — legal, DevOps, QA — or you’ll pay for it later.
- You don’t always need a mobile app; web-first wins for B2B and SaaS.
- UK grants are real money — and they’re easier to win than you think.
Want Your Own App Cost Estimate?
No need to guess. Use our UK App Cost Calculator — three minutes, a handful of questions, and you’ll get:
- A realistic price range for your build
- The team setup you actually need (no extra fluff)
- Timeline and stack suggestions that match your budget
- Results powered by data from 10,000+ UK and EU projects
Give it a try before your next agency call — or before you send that investor update.
App Development Cost UK: Answers to Founders’ Top FAQs (2025)
How much does it cost to build an app in the UK?
Most founders spend £40–70 k for a simple MVP, £70–120 k for a mid-range product, and £120 k+ for enterprise builds. London quotes trend 25 % higher than regional or hybrid teams. Example: the same two-sided marketplace cost £94 k in Shoreditch vs £57 k with a UK PM + Polish devs.
Can I hire offshore devs and still get SEIS?
Yes. SEIS cares where your company is incorporated and where shares are issued, not where you write code. One founder hired a Ukrainian team, raised a £150 k SEIS round, and still claimed the full 50 % investor tax relief—because the UK entity owned the IP and employed a UK director.
How long does it take to build an MVP?
A focused team ships a basic, testable MVP in 8–12 weeks. Add complex payments, AI, or heavy compliance and you’re looking at 12–20 weeks. Beam XR, for example, delivered a grant-funded AR prototype in 90 days by freezing scope and running weekly user tests.
What is a realistic post-launch budget?
Plan on 15–25 % of your build cost every year. A £60 k MVP needs roughly £10–15 k for OS updates, bug fixes, small features, and cloud bills (usually £50–200/month at launch). Skipping this line item is why many apps stall six months after going live.
Is it cheaper to use Flutter or React Native?
Cross-platform tools save money when you need both iOS and Android fast. Flutter or React Native can reuse 70–90 % of code, cutting initial cost by 25–35 % versus two separate native builds. A fintech MVP we tracked dropped from £90 k (native) to £62 k with Flutter.
Can I apply for a grant without a CTO?
Absolutely. Innovate UK doesn’t require an in-house tech lead; they assess the project plan. Many solo founders win Smart Grants up to £300 k by partnering with a technical advisor or agency listed in the proposal. Just be ready to explain milestones, risks, and who signs off the code.
How do UK grants affect my app development cost?
UK grants—like Innovate UK Smart Grants—can cut your out-of-pocket app cost by 30–50%. For example, a founder who received a £60k grant only spent £20k of their own capital to launch a healthtech MVP. Grants typically cover salaries, contractors, and R&D expenses, but you’ll need a strong technical plan and clear milestones to win.
How should I budget for app maintenance in the UK?
Budgeting for app maintenance in the UK means setting aside 15–25% of your initial build cost every year for bug fixes, OS updates, and feature tweaks. For example, a founder who spent £80k on an MVP later needed £16k/year for ongoing support and platform updates. Ignoring this line item is the #1 reason apps quietly die after launch.
How can I reduce my app development cost without sacrificing quality?
The fastest way to trim costs is by using a hybrid team—UK-based product owner, nearshore devs—and leveraging R&D tax credits or SEIS. For example, one SaaS startup cut their build cost from £100k (all-London team) to £55k (hybrid + R&D relief) with no drop in code quality. Don’t skip on project management; skimping there usually backfires.
Meet Our Expert Flutter Development Team
Our full-cycle Flutter development team at Ptolemay specializes in building high-quality, cross-platform apps from start to finish. With expert skills in Dart, backend integrations, and seamless UX across iOS and Android, we handle everything to make your app launch smooth and efficient.
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